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Bank Statement Loans in Dixon
Dixon's self-employed population—contractors, ag consultants, small business owners—faces a common problem. Tax returns show limited income after write-offs.
Bank statement loans bypass traditional W-2 verification. Lenders analyze 12 to 24 months of deposits to establish qualifying income.
This matters in Solano County where many buyers run sole proprietorships or 1099 operations. Standard conventional underwriting rejects viable borrowers who show strong cash flow.
Minimum credit score runs 620 to 680 depending on loan-to-value. Most Dixon deals close with scores above 660.
Down payment starts at 10% for primary residence. Expect 15-20% for investment properties or lower credit profiles.
Lenders calculate income by averaging total deposits over the statement period. They deduct business expenses to arrive at net qualifying income.
You need consistent deposits showing stable cash flow. One strong month doesn't offset eleven weak ones.
Not every lender offers bank statement programs. The wholesale channel gives brokers access to 15-20 active lenders with varying overlays.
Rate pricing runs 1-2% higher than conventional. Rates vary by borrower profile and market conditions but expect mid-7% to low-8% range currently.
Some lenders accept business-only accounts. Others require personal accounts showing commingled deposits. This detail kills deals when borrowers don't know upfront.
Underwriting timelines stretch to 30-45 days. Lenders manually review every statement page looking for NSFs, irregular patterns, or income verification issues.
Most self-employed borrowers think they can't qualify because their CPA minimized taxable income. That's exactly who this loan serves.
The biggest mistake is mixing personal and business deposits carelessly. Lenders need clean documentation showing income sources—not random Venmo transfers.
Start gathering statements 60 days before applying. You need consecutive months with no gaps. Missing even one month restarts the clock.
Dixon borrowers with seasonal businesses struggle here. A farmer with harvest income concentrated in three months looks risky to underwriters reviewing monthly averages.
1099 loans work better for commission-based earners with clean year-end statements. Bank statement loans fit business owners who can't prove income on 1099s.
DSCR loans make sense for pure investment properties in Dixon. Bank statement loans work for primary residence or mixed-use properties where you need personal income qualification.
Profit and loss statement loans require CPA preparation and business financials. Bank statement programs skip that paperwork—just provide your statements.
Asset depletion loans qualify you based on liquid assets. Bank statement loans prove you earn money actively rather than depleting savings.
Dixon's agricultural economy creates borrowers perfectly suited to bank statement programs. Crop consultants, equipment operators, and ag service providers file Schedule C returns showing minimal income.
Property values in Dixon allow bank statement borrowers to stay within conforming loan limits. You're not fighting jumbo requirements on top of non-QM pricing.
Solano County properties appraise consistently. Underwriters don't flag Dixon addresses for collateral issues the way they might in more volatile markets.
Local self-employed borrowers often carry business debt that doesn't show on personal credit. Bank statement programs focus on cash flow rather than debt ratios traditional lenders penalize.
Some lenders allow business-only accounts while others require personal accounts showing deposits. We match you to lenders based on your account structure.
Lenders average all months but look for overall consistency. Extreme volatility raises red flags and may reduce your qualifying income calculation.
Most borrowers qualify for 30-50% more than tax returns show. The exact amount depends on your deposit patterns and business expense percentage.
Yes, but expect 20-25% down payment and slightly higher rates. Many investors prefer DSCR loans which don't require personal income verification at all.
Conventional loans close in 21-30 days. Bank statement loans need 35-45 days due to manual statement review and non-QM underwriting processes.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.